FILE- In this Dec. 13, 2017, file photo Alexis Ohanian, co-founder of Reddit, speaks at a Microsoft event in San Francisco, Wednesday, Dec. 13, 2017. Social media service Reddit Inc. says it has raised $300 million in a financing round led by Chinese internet giant Tencent. Reddit's CEO, Steve Huffman, told CNBC on Monday, Feb. 11, 2019, that values the privately held company at $3 billion.

(AP Photo/Jeff Chiu, File)

news
1 week ago

Reddit raises $300M in finance round led by China's Tencent

The Associated Press

SAN FRANCISCO (AP) — Social media service Reddit Inc. says it has raised $300 million in a financing round led by Chinese internet giant Tencent.

Reddit's CEO, Steve Huffman, told CNBC on Monday that values the privately held company at $3 billion.

Half the new money came from Tencent, Asia's most valuable tech company. Other investors included Sequoia, Fidelity, Andreessen Horowitz, Quiet Capital, VY and Snoop Dogg.

The announcement prompted criticism of Reddit for linking itself with a company from China, where the ruling Communist Party enforces extensive online censorship. Access to Reddit is blocked in China.

Tencent operates online games and popular WeChat social media service. It owns 40 percent of "Fortnite" creator Epic Games and 15 percent of photo service Snap.